Gold Edges Higher as US Treasury Yields Decline Despite Rate Hike Expectations

Gold prices rose by 0.3% on Tuesday to $4,357.31 per ounce as US Treasury yields declined, despite expectations of higher interest rates limiting gains.

The yield on 10-year US Treasury notes fell for a second consecutive session, which typically supports the value of gold as investors seek safe-haven assets.

However, the appeal of gold tends to decline when interest rates rise, and investors favor assets that generate returns. The Federal Reserve raised its benchmark interest rate by a quarter percentage point last week and indicated further increases may be implemented in the coming months.